COBRA Insurance Coverage?
COBRA is an acronym for the Consolidated Omnibus Reconciliation Act. It contained, among other things, a provision that provided workers whose company employed a minimum of 20 employees and who offered a group health insurance plan, the opportunity to continue coverage after being laid off, terminated or who fell below the qualifying number of hours worked.
Under the COBRA option, an employee who meets those conditions mentioned above may continue their coverage for a period of from 18 to 36 months. The employee pays the full premium. In businesses employing 50 or more the employer is obligated to pay a minimum of 50% of the premium cost but under COBRA, the employer’s obligation does not include paying their portion of the premium. In addition an administrative fee of up to 2% may be collected as well.
COBRA is not an inexpensive proposition. For some it may provide an option to continue coverage until they have obtained a new job, or their number of hours increases so they meet the minimum required to qualify to go back on the employer’s plan.
There are certain conditions that must be met before one can qualify for COBRA coverage. The employee must have been enrolled in the employer’s group medical coverage before they are terminated or their hours are reduced. An employee who has been dismissed for “gross misconduct” may be denied the COBRA option by their employer.
Since loss of job and/or insurance coverage is considered a qualifying event under the Affordable Care Act as well as Medicare, an employee to whom this has happened can qualify for a special open enrollment period in the Marketplace and in Medicare. The insurance Marketplace almost certainly has a less expensive option for individual and family coverage. Medicare coverage is available to those 65 and older and others who meet certain qualifying conditions. Let ConsumerCoverage help you find a suitable Medicare Advantage plan, or Part D drug coverage. Whatever situation you are in you can begin your search right here.
If you have been recently terminated, laid off or no longer qualify for your employer’s group medical plan and need to find an alternative contact ConsumerCoverage for help, we have the agents, insurance products and Marketplace expertise to get you individual as well as family coverage at the most affordable prices. For Medicare eligible individuals we have experts who can guide you through the process of choosing traditional Medicare or a Medicare Advantage plan.
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